Suppose the retail price of an automobile is 23000 in 1999 a

Suppose the retail price of an automobile is $23,000 in 1999 and that it increases at 3% per year. a. Write the equation of the exponential function, in the form y = a(1 + r)^t, that models the retail price of the automobile t years after 1999. b. Use the model to predict the retail price of the automobile in 2016. a. Choose the function that models the retail price of the automobile t years after 1999 P(t) = 23,000(4)t P(t) = 23.000(0.97)t P(t) = 23.000(1.03)t

Solution

a.

Equation is given by

23000(1+3/100)^t=23000(1.03)^t